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by boca
4236 days ago
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Wrinq is an interesting idea that even I had thought about earlier. I pay my rent using a personal check which the landlord then encashes at the bank. I will prefer to pay my rent online using a credit or debit card. But from a landlord's perspective, wouldn't it incur an additional processing fee if he/she were to start accepting a credit/debit card thereby reducing the net amount for him/her? The only way for it work for the landlord would be to increase the rent which I, as a tenant, will not like. I understand there's convenience but don't think it would justify a rent increase of 3% (average credit card processing fee) which can be a lot depending on where you are. How are you handling this problem? I know some landlords already have the option of paying by credit/debit card. It may work out in case of a new tenant but what about existing tenants? How does the landlord or you as a service provider justify the not-so-insignificant increase for them? |
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1. Some of them flat out refused to use such a service. As you say the increase in costs was a detriment to them.
2. Some tenants said that it would be a very good idea and they would not mind paying higher rent if it meant that it was more convenient for them to pay.
Group #1 were people who had a family to support and increase in cost was significant. Group #2 were single persons with high salaries and 30-100 additional monthly cost meant nothing to them (this includes the fees of wrinq as well).
I also discovered a third group of people. Landlords who were willing to take in less rent if it meant that their tenants were happier. These people did not keep tenants for profit but for company and maintenance of their properties ("better than it being empty and gathering dust") so I will be targeting groups #2 and #3.
Also I think you can have a tremendous advantage if you look for landlords locally and offer them additional services. Like I have tied up with a few agents in my locality so when the existing tenants leave I am going to make sure that the landlords find new ones quickly without any difficulties. This way I promise new business to agents, good tenants to landlords and continuous income stream to myself.
Finally tie up with your local banks. Despite what most people think banks these days are quite open do business with individuals. They can offer you a proprietary api for a small upfront fees (and lot lesser transaction charges) which you can use to lower your charges. But don't do this at first. This should be a last resort when you have exhausted other methods or if you want to grow your market to group #1.
Anyway don't give up on the idea. Talk to people in your locality maybe you can discover some other ways that you can help them besides collecting rent.